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Bank of Thailand tackles surging Thai Baht

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Bank of Thailand tackles surging Thai Baht | The Thaiger

In attempts to exert some pressure on the Thai Baht control levers, the Bank of Thailand says it’s scaling back the auction size of short-term bonds. The actions are an attempt to curb the rapid surge of the Thai Baht which hit a six-year high last Monday.

The central bank has announced that the reduction of short-term bond supply is aimed specifically at overseeing the movement of the Thai Baht. However, the market has interpreted the move as the attempt to slow the capital inflow.

Thitima Chucherd, an economist of the BOT, attributes the rise of Thai Baht to the capital inflow that has moved to safe haven assets in Thailand.

She says, “…during the financial turbulence on the market, international investors tend to apply risk-off approach by selling their assets to avoid risks in one market and holding assets such as bonds denominated in safe haven currency.”

The Kasikorn Research Centre says…“The Bank of Thailand’s short-term bond supply reduction may be one of the initials steps to curb the movement of the Thai Baht.”

The Baht rose to hit a six year high of 30.52 to the USD on July 1, before settling slightly weaker to around 30.8 per dollar yesterday in response to the news about the central bank’s decision to reduce the short-dated note supply next month.

The central bank reduces the supply of short-term bonds, including three month, six month and one year bonds. The size of three-month and six month bonds will be cut by 5 billion baht per week in July. The supply of one-year note issuance will be cut by 10 billion baht.

International investors are viewed Thailand as safe haven because of the country’s strong economic fundamentals, backed by current account surplus and prospects in attracting foreign direct investment thanks to the government’s mega projects including the Eastern Economic Corridor and high-speed railway projects.

These factors pushed up the value of Thai Baht in spite of a series of turbulences in financial markets which prompted central banks in some countries with current account deficit such as Turkey, Argentina and Brazil, to tighten their monetary policies. Indonesia raised interest rates six times by 175 basis points last year to defend the rupiah currency.

Thailand has become one of the best performers even though Thailand has been slow in raising the policy rate. The central bank increased the interest rate to 1.75 percent in December last year, the first increase since 2011.

Already, the strong Baht has taken a toll on Thai exports which are expected to record a zero or even negative growth this year. The Sports and Tourism Ministry has also blamed the strength of the baht, in part, for a drop in some tourist demographics travelling to Thailand.

SOURCE: Thai PBS



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Business

Residential projects launched in June up, but sale 15% lower than May

The Thaiger & The Nation

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Residential projects launched in June up, but sale 15% lower than May | The Thaiger

As many as 47 new residential projects were launched in Bangkok and its suburbs last month (June), 16 more than in May. This from the Agency for Real-Estate Affairs.

The projects combine 13,943 units worth a total of 57.25 billion baht, with per-unit prices averaging at 4.1 million baht, the survey added.

The sale of new projects launched in June was 15% less than in May, when 20% of the newly launched projects were sold, on average.

The firms that launched projects in June include Pruksa Real Estate, Chewathai, Lalin Property, Property Perfect, Supalai, AP (Thailand), Areeya Property, Sansiri, and Eastern Star Real Estate.

SOURCE: The Nation

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Business

Singapore’s exports crash in June, the biggest drop in 6 years

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Singapore’s exports crash in June, the biggest drop in 6 years | The Thaiger

Edited from The Straits Times – Asian News Network

Singapore’s exports have crashed by double digits for the fourth straight month. June’s figures show shipments in the key electronics sector sinking by 32%. This is the biggest year-on-year drop since shipments sank 33.2 per cent in February 2013.

It is also sharply below analysts’ expectations of a 9.6% plunge, according to a consensus of forecasts in a Bloomberg poll.

The dismal export figures and second-quarter growth data raise the prospect of a monetary policy easing for Singapore later this year, according to analysts.

Maybank economists state in a report that, given the current recession risks and softer core inflation, they expect the Monetary Authority of Singapore to ease the appreciation slope of the Singapore dollar in October.

Analysts in the electronic sector warn that, within the chip manufacturing segment, they’ve already seen many downbeat assessments from chipmakers, equipment makers, cutting their sales forecast for the first time in four years.

An ING economist for Asia, Prakash Sakpal, says that Singapore was not alone in posting poor export performance.

“South Korea and Taiwan are suffering from this as well, although Singapore seems to be hit a bit harder than other economies.”

Singapore’s exports to its top 10 markets fell in June, except to the US. Leading the decline were falling shipments to Hong Kong, China and Europe.

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Phuket’s Banyan Tree celebrates 25 year anniversary with new Serenity Villas

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Phuket’s Banyan Tree celebrates 25 year anniversary with new Serenity Villas | The Thaiger

2019 is a year of celebration for Banyan Tree Phuket, with the resort offering two brand new villa categories, as part of its year-long 25th anniversary celebration.

In September this year, the iconic Banyan Tree Phuket, the flagship property for Banyan Tree Hotels & Resorts, will celebrate 25 years as Phuket’s premier holiday resort. The festivities will include the release of the new Serenity Pool Villas and Serenity 3 Bedroom Pool Residences.

Also this September there will be a Charity Golf Tournament, a Phuket Inter Hotel Football Charity Tournament, Tree Planting events with a worldwide goal of planting 25,000 new trees, sustainability activities such as Plastic Free Banyan Tree, and a special gala event to honour guests who have visited the property since its beginning.

But the highlight of the festivities will be the new villas: 25 One Bedroom Serenity Pool Villas and 8 Serenity Three Bedroom Pool Residence, which are now open for bookings for stays from November 1, 2019. The new Villas are located on the Golf Course and provide an ample space for guests to relax and unwind in their own private villa. In true Banyan Tree style all villas are complete with their own private pool.

Sriram Kailasam, Area General Manager, has spent 17 years with Banyan Tree properties.

“Our achievements so far have been beyond anything we could have hoped for in the early years of the property. But every award we win, and every smile we see on the face of our valued and loyal guests, is a testament to the hard work and dedication of our entire team. Our launch of the new Serenity Villas and Residences is proof positive that our commitment to innovation and guest satisfaction is brighter than ever.”

Phuket's Banyan Tree celebrates 25 year anniversary with new Serenity Villas | News by The Thaiger Phuket's Banyan Tree celebrates 25 year anniversary with new Serenity Villas | News by The Thaiger

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